TERREBONNE, QC,
Sept. 11, 2014 /CNW Telbec/ - ADF
GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), closed the
second quarter of the 2015 fiscal year with revenues of
$20.4 million, up from those for the
same quarter of the previous fiscal year. For the six-month period
ended July 31, 2014, ADF Group
recorded revenues of $44.8 million, compared with $29.9 million the previous year. The
increase compared with the previous year is mainly due to the
Quebec City's amphitheater
project. Although revenues are up compared with last year's
corresponding periods, the trend of the last quarters is down due
to the completion of the projects of Syncrude, in Alberta, and the Quebec City and Trois-Rivières
amphitheaters.
The second-quarter gross margin, as a percentage
of revenues, stood at 10.8% compared with 23.9% for the
corresponding quarter the previous year, whereas the gross margin
for the six-month period ended July 31,
2014 stood at 11.2% compared with 18.7% a year earlier.
These decreases are mainly explained by the completion of the
previously mentioned projects and the start up of the new
fabrication plant in Great Falls,
Montana.
ADF posted second-quarter net loss of
$0.3 million ($0.01 per share, basic and diluted), compared
with net earnings of $1.2 million
($0.04 per share, basic and diluted)
a year ago. For the first six months, net earnings totalled
$0.1 million ($0.00 per share, basic and diluted), compared
with $1.0 million ($0.03 per share, basic and diluted) for the first
half of the previous year.
The Corporation's operating activities used cash
flows of $9.6 million in the
second quarter and $11.2 million
during the six-month period ended July 31,
2014. As at July 31, 2014, the
Corporation had a working capital of $30.8 million, including short-term
available liquidities (cash, cash equivalents and short-term
investments) of $6.5 million.
The Corporation remains in a solid position to support its ongoing
operations, pursue its development projects and remunerate its
shareholders in accordance with the dividend payment policy.
As at July 31,
2014, the Corporation backlog stood at $9 million. Since that date, the Corporation
obtained new fabrication contracts in Canada and in the
United States, totalling $5.3
million. These new projects will be completed in the coming
months.
Financial Highlights
|
|
Three Months |
Six Months |
Periods ended July 31 |
2014 |
2013 |
2014 |
2013 |
(In thousands of dollars, and dollars per
share) |
$ |
$ |
$ |
$ |
Revenues |
20,435 |
17,649 |
44,837 |
29,925 |
EBITDA |
496 |
2,562 |
1,902 |
3,037 |
Net income |
(347) |
1,219 |
124 |
950 |
— Per share (basic and diluted) |
(0,01) |
0,04 |
0,00 |
0,03 |
Cash flows from (used in) operating
activities |
(9,644) |
(1,744) |
(11,204) |
(1,638) |
Average number of outstanding shares (basic, in
thousands) |
32,492 |
32,453 |
32,492 |
32,452 |
Average number of outstanding shares (diluted, in
thousands) |
32,492 |
32,941 |
33,282 |
32,928 |
Outlook
"As announced this past February, the
construction of our new industrial paint and coating shop is
underway and is going as planned. The commissioning of the new
paint shop is scheduled for the end of 2014. We expect that our
recent development projects, together with a market that is still
impacted by a strong pressure on prices, will continue to impact
our results in the short-term.
ADF's markets continue to show positive signs of
improvement and we are bidding actively. This being said, we remain
committed to our prudent and selective approach adopted in the past
years and continue to privilege profitable and long-term growth.
Our strategy may, from time to time, postpone the conclusion of
certain agreements, however it allows us to assure our shareholders
of a long-term profitability" concluded Mr. Jean Paschini, Co-Chairman of the Board and
Chief Executive Officer.
Dividend
The Corporation announces today the payment of a
second semi-annual dividend of $0.01
per subordinate voting share and multiple voting share, which will
be paid on October 15, 2014 to
shareholders of record as at September 30, 2014.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the
design and engineering of connections, fabrication and installation
of complex steel structures, heavy steel built-ups, as well as in
miscellaneous and architectural metals for the non residential
construction industry. ADF Group Inc. is one of the few players in
the industry capable of handling highly technically complex mega
projects on fast-track schedules in the commercial, institutional,
industrial and public sectors. The Corporation operates two
fabrication plants, one in Canada
and one in the United States.
Forward-Looking Information
This press release contains forward-looking
statements reflecting ADF objectives and expectations. These
statements are identified by the use of verbs such as "expect" as
well as by the use of future or conditional tenses. By their very
nature these types of statements involve risks and uncertainty.
Consequently, reality may differ from ADF's expectations.
Non-IFRS Measures
Earnings before interest, taxes, depreciation
and amortization ("EBITDA") is not a performance measure recognized
by IFRS standards, and is not likely to be comparable to similar
measures presented by other issuers. Management, as well as
investors, consider this to be useful information to assist them in
assessing the Corporation's profitability and ability to generate
funds to finance its operations.
All amounts are in Canadian dollars, unless
otherwise indicated.
CONFERENCE CALL WITH INVESTORS
To discuss ADF Group's results for the 3-month and 6-month periods
ended July 31, 2014,
September 11, 2014 at 10:00 a.m. (Montreal time)
To participate in the conference call, please dial
1-866-865-3087 a few minutes before the start of the
call.
For those unable to participate, a taped rebroadcast will be
available from
Thursday, September 11, 2014 at 1:00 p.m. until midnight Thursday
September 18, 2014,
by dialing 1-855-859-2056; access code 95882201.
The conference call (audio) will also be available at
www.adfgroup.com
Members of the media are invited to listen in. |
SOURCE ADF Group Inc